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IS/IT Procurement: How Automation of Invitation Tender Can Support and Assist Companies Essay

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Updated: May 6th, 2019

Introduction

The internet has globalized this world to an extent that it looks like a virtual communal centre. People can send and receive electronic messages through e-mails. They can also make calls from literary anywhere in this globe and receive instant feedback. This has taken a new twist in the business world as prospective employees find jobs online.

Outsourcing has boomed with new technologies emerging in the information systems and technology markets. This has encouraged emerging markets and e-commerce that is trying to catch up with the latest technologies. Another product that has steadily grown over the years is automation of invitation to tender.

Tenders can now be awarded overseas and to international companies with a click on the button. This paper will explore the effects of automation of invitation to tender on the development of companies.

Invitation to tender

Invitation to tender, also known as call for bids or request for tender refers to the process of generating several rival offers from various bidders who are hoping to muscle each other to the award of business doings such as supply, works or services. These tenders usually come after a prequalification questionnaire is filled. The tenders can be either open or restricted.

The latter is usually meant for specific suppliers or military contracts, which are of special interest to the country’s security, among others. In the manual case, tender boxes are always located at specific areas of the organisation or in the post offices specifically meant for tender documents.

Virtually all public sectors are obliged to provide tenders for their works and services. These are always posted on the local media, posters and their websites, among others. With the globalization, electronic procurement has taken shape and is fast increasing as different local and multinational companies try to outsource services offshore to speed up the process.

Automated Invitation to tender

IS/IT procurement has increasingly risen in the modern world, with different companies using modern software to speed up the process of procurement as well as make use of the globalized world which has brought everything close.

Procurement as a process is extensive and tasking, invitation to tender can take several months to arrive at a winner, and it is time consuming especially, when post office and/or manual delivery of tender is involved.

In a world where virtual telecommunication and video conferencing, thanks to information and systems technology, has eased the other factors of production, it is only wise to make use of such technologies to fasten the extensive process of procurement. Automation of invitation to tender has been practiced for several years now and its increased use is credited to its advantages.

E-procurement has several advantages as suggested above; it saves time, reaches out to a wide range of competitive bidders, economical, convenient, reliable and efficient. In addition, it has the potential to generate the best of the best for the service required. Its flexibility and cost effectiveness makes it easier for an organisation to subscribe to tender alerts to be kept updated of any need for their services.

Since several companies around the globe seek to achieve competitiveness and economies of scale, automation of tender services are on the increase. The slowest to move in to automation is the industrial and manufacturing world, but this trend has changed as more and more of these companies seek improvements on their services and production.

Tenders from manufacturing and industrial centres have increased with such bids afloat globally. Information system and information technology has therefore become an integral part of the modern world. It helps in service delivery and production.

Underlying concepts and background

All public sectors are obliged to provide tenders; e-procurement has made it much easier and fast. The need to keep pace with technological world and the urge to be competitive has soared necessitating the call for automation tenders.

Digital technology has enabled automation of tenders to achieve their core business objectives. Several organisations have initiated private services to help market automation tenders through their websites and other sources.

This has brought into place the huge pool of bidders and organisations in need of their services together through online procurement systems. An example is ESA international, which is an organisation that deals with EMITS (electronic mailing of invitation to tenders) ITT.

Such companies have created awareness of these services worldwide thereby increasing their capacities and efficiencies. Furthermore, such linking agencies act as a communication network between industries as well as companies, thereby simplifying the procurement process.

In applying PESTLE analysis on Automation of invitation to tenders, it is quite handy to note that the overall result is encouraging its growth throughout the globe. Considering the factors in question such as, the environmental, economical, political, legal, sociological and technological, it is important to note that these factors have had positive effects on the development of automation of invitation to tender.

For instance, there is virtually no political obstacle to the development of tender automation industry; the legal factors are related to the security of information against hackers and privacy, for example in that case of military contracts. However, even this can be accommodated, as there are various ways of ensuring information security such as encryptions.

Social factors are more likely to encourage e-commerce, and no or less pollution to the environment since the use of posters are minimized. Both economic and technological factors are set to gain from reduced spending and more research to improve technology. In essence, the automation of ‘invitation to tender’ is the important, and will continue spur the modern world.

The current situation of Automation of Invitation Tender in the world

The current trends show increase in automation industries all over the world. Europe and the United states have developed their automation to an exceptional level with specific agencies assigned the responsibility of ensuring the process is handled in a professional manner.

An example is the ESA agency in Europe, which offers exceptional standards of service to bidders and companies seeking their services. These procurement agencies have put in place complex framework aimed at providing professional services. They also offer post-awarding services, which include follow-ups, sourcing, ordering, fulfilment, billing and payment on behalf of the purchasing authority.

Modern automated tendering is efficient and backed with complex software that is aimed at preventing hackers and private information from unintended users. Information and System technology has played an important role in ensuring safe running of such tenders.

Several industrial and allied companies such as producers and manufactures are moving into automated information systems. Web portals are on the increase with industrial worlds like china, India, United States, Britain, Germany and France, among others making notable advances into paperless tender.

Evaluations of tender bids have also taken a new shape with most companies doing automated evaluation, thereby reducing on evaluation costs. The world is hence becoming smaller and smaller with the development of new technological advances that improve automation of industries.

India presents an example of an industrial hub, in which implementation of automated tender would be of great significance to their productivity, no wonder most of Indian industrial sectors have embarked on a plan to achieve full automation.

The whole world from Africa, to America, Europe to Asia and Australia are all pressing their buttons in invitation to tender. This system is especially taking a new twist in the developing world, with most countries either acquiring or stepping up their already acquired automation information systems.

Summary

Automation of invitation tenders makes it as one of the most important technological achievements of the past decade. Having started in the developed world, it has been embraced in virtually every country in the world. Among these are India and China who are implementing it for heir industrial sectors at a fast rate. Automation of tender is very important in bring together the various companies seeking what they need.

Developments of electronic procurement agencies have been essential in organisational development. Their knowledge in procurement procedures as well as evaluation and follow-ups has reduced the cost and complexity of the once so extensive task.

The PESTLE analysis conducted on automated invitation to tender gives an indication of a viable product in the market, which would help improve production and service delivery. Every company aims to achieve competitive edge over others and this service provides an ideal way of not only attaining this but also reducing on tender costs.

Conclusions

Automation of invitation to tender is one of the most important landmarks of technology. It provides for process automation by systematic invitation to the purchasing authority, and act as a communication channel between industries. It also provides automatic evaluation for invitations thereby saving on cost and time, which are important inputs into productivity.

Recommendations

IS/IT procurement is essential to all kinds of businesses and should be encouraged all over the globe as a way of generating competitive bidders. Automated invitation to tender is convenient in the modern world and should be provide in every institution that target competitiveness and economies of scale.

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"IS/IT Procurement: How Automation of Invitation Tender Can Support and Assist Companies." IvyPanda, 6 May 2019, ivypanda.com/essays/is-it-procurement-how-automation-of-invitation-tender-can-support-and-assist-companies-essay/.

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IvyPanda. "IS/IT Procurement: How Automation of Invitation Tender Can Support and Assist Companies." May 6, 2019. https://ivypanda.com/essays/is-it-procurement-how-automation-of-invitation-tender-can-support-and-assist-companies-essay/.

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IvyPanda. 2019. "IS/IT Procurement: How Automation of Invitation Tender Can Support and Assist Companies." May 6, 2019. https://ivypanda.com/essays/is-it-procurement-how-automation-of-invitation-tender-can-support-and-assist-companies-essay/.

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IvyPanda. (2019) 'IS/IT Procurement: How Automation of Invitation Tender Can Support and Assist Companies'. 6 May.

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